Missouri Motor Vehicle Dealer Surety Bond
A Missouri motor vehicle dealer surety bond is a required license bond for any person or business engaged in the sale of motor vehicles, boats, powersport vehicles, or trailers within the State of Missouri. The Missouri Department of Revenue (DOR), Motor Vehicle Bureau, Dealer Licensing Section requires all dealer license applicants to post a surety bond as part of the licensing process. The standard bond amount is $50,000, with a $100,000 bond required for dealers who deliver vehicles before transferring the certificate of ownership. Surety One, Inc. offers quick, no-hassle underwriting for Missouri motor vehicle dealer bonds, including options for new applicants and those with challenged credit.
Bond Amount & Requirements
Missouri Revised Statutes §301.560 requires a corporate surety bond or irrevocable letter of credit for all dealer license applicants. The bond must be on a form approved by the Department of Revenue and must be maintained for the entire licensure period.
Additionally, Section 301.210 RSMo requires a separate $100,000 surety bond or irrevocable letter of credit for any licensed dealer who delivers a motor vehicle or trailer to a purchaser with an agreement that the certificate of ownership will be transferred within 30 days of delivery.
| Bond Amount | License Type | Description |
|---|---|---|
| $50,000 | Franchise Motor Vehicle Dealer | Sells new and used motor vehicles under a manufacturer franchise agreement |
| $50,000 | Used Motor Vehicle Dealer | Sells used motor vehicles to the public |
| $50,000 | Wholesale Motor Vehicle Dealer | Sells motor vehicles exclusively to other licensed dealers |
| $50,000 | Powersport Dealer (New & Used) | Sells motorcycles, motor tricycles, and powersport vehicles |
| $50,000 | Boat Dealer | Sells vessels and vessel trailers (must sell 6+ per year) |
| $50,000 | Trailer Dealer | Sells trailers to the public |
| $50,000 | Emergency Vehicle Dealer | Sells emergency vehicles (exempt from lot inspection) |
| $50,000 | Recreational Vehicle Dealer | Sells recreational vehicles (RVs) to the public |
| $50,000 | Public / Wholesale Motor Vehicle Auction | Conducts public or wholesale motor vehicle auction sales |
| $100,000 | 30-Day Title Delivery Dealers | Dealers delivering vehicles to purchasers before transferring the certificate of ownership (per §301.210) |
Important — Irrevocable Letter of Credit Alternative: Missouri permits dealers to post an irrevocable letter of credit (as defined in §400.5-103 RSMo) from any state or federal financial institution in lieu of a corporate surety bond. The letter of credit must be in the same penal sum as the required bond amount.
Who Needs This Bond?
Missouri law requires that any person who sells six (6) or more motor vehicles or trailers in any calendar year must be licensed as a motor vehicle dealer. Similarly, boat dealers must sell six or more vessels or vessel trailers per year to qualify for renewal. Operating without a license is a Class A misdemeanor for a first offense and a Class E felony for a second violation under §301.559 RSMo.
The bond is required for:
- New (franchise) motor vehicle dealers
- Used motor vehicle dealers
- Wholesale motor vehicle dealers
- Powersport dealers (new and used motorcycles, motor tricycles)
- Boat dealers (6+ vessels/year)
- Trailer dealers
- Emergency vehicle dealers
- Recreational vehicle dealers
- Public and wholesale motor vehicle auctions
- Motor vehicle manufacturers
How Much Does the Bond Cost?
The cost of a Missouri motor vehicle dealer surety bond (the “premium”) is a small percentage of the required bond amount. Your exact premium is determined by a number of underwriting factors including your personal credit score, business financial strength, industry experience, and claims history. Because each applicant’s profile is unique, premiums vary and are quoted on an individual basis.
Surety One, Inc. offers competitive rates for all credit profiles, including programs for applicants with challenged credit. Surety bond application review and quoting are free of charge. There is no obligation to purchase. Contact us for your personalized quote.
Missouri Dealer License Requirements
In addition to the surety bond, the Missouri Department of Revenue requires the following for a dealer license:
- Completed Application for Dealer, Auction, or Manufacturer License and Number Plate(s) (Form 4682)
- Inspection and Certification for Dealer, Auction, or Manufacturer Business License (Form 5748) — completed by a uniformed member of the Missouri State Highway Patrol (or city police in first-class counties)
- Dealer Educational Seminar certificate of completion
- A bona fide established place of business with a permanently enclosed building
- Display lot of sufficient size to accommodate multiple vehicles, in an exclusive area with unencumbered visibility from the public street
- Permanent exterior sign with the dealership name in letters at least 6 inches tall, clearly visible to the public
- Business open at least 20 hours per week and at least 4 days per week between 6:00 a.m. and 10:00 p.m.
- Criminal record check from the Missouri State Highway Patrol for each owner, partner, or principal officer (must be less than 30 days old)
- Business name registered with the Missouri Secretary of State
- Garage liability insurance policy (manufacturers, auctions, and trailer dealers exempt)
- Photograph of the building, lot, and sign
- Copy of franchise agreement (new/franchise dealers only)
- License fee of $150 (motor vehicle) or $80 (marine) plus dealer plate fees
Filing, Renewal & Cancellation
The original executed surety bond must be submitted with the dealer license application to the Motor Vehicle Bureau, Dealer Licensing Section. An irrevocable letter of credit of equal value is accepted as an alternative. All Missouri dealer licenses and surety bonds expire December 31st of each year. There is no grace period — any vehicles bought or sold while unlicensed must be titled and taxed as personal transactions.
New applicants (non-renewal, non-franchise) must have a bona fide place of business certified annually for the first three years and every other year thereafter. The surety or letter of credit issuer must notify the DOR at least 30 days prior to cancellation or revocation.
Bond Claims
If a dealer is convicted of fraudulent sales activity by a Missouri court, the Department of Revenue may revoke the dealer’s license. Consumers who suffered financial harm can then pursue a claim against the $50,000 (or $100,000) surety bond or letter of credit for compensation. The surety company will investigate each claim and compensate valid claims up to the full bond amount. The bonded dealer is then required to reimburse the surety for any amounts paid.
Missouri Department of Revenue
Motor Vehicle Bureau, Dealer Licensing Section
P.O. Box 43
Jefferson City, MO 65105-0043
Phone: (573) 526-3669 (option 7)
Web: dor.mo.gov/motor-vehicle/dealers-lienholders
Online: mydmv.mo.gov (apply/renew online)
Surety One, Inc. is the Missouri surety bond expert provider, licensed in all fifty states, U.S. territories, and Canada. We offer competitive rates and excellent customer service for Missouri motor vehicle dealer bonds and all other license bond classes. Need help meeting your DOR licensing requirements? Call us at (800) 373-2804, email us at Underwriting@SuretyOne.com, or click here to chat with a live underwriter (no bots!) for immediate assistance. We’re here to support your business success.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
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